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tv   Markets Now  FOX Business  September 17, 2012 11:00am-1:00pm EDT

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when the administration-sponsored bin laden movie comes out this fall. stuart: it was a good show, trumpets and all. here's dagen and connell. dagen: i'm dagen mcdowell. connell: i'm connell mcshane. the protesters are out both here and over there, occupy wall street protester are back today, marking one year anniversary and the anti-american protests continue in the middle east raising more questions about the president's foreign policy. dagen: mitt romney's tax plan not connecting with voters. how the g.o.p. candidate is losing a bat that will he should be winning. -- losing a a battle that he could be winning. chicago's mayor taking the city's teachers taking them to court, trying to force them back to work and kids back in the school. connell: apple's new iphone, the company says it is already setting records. dagen: now to stocks, nicole petallides at the new york stock exchange. nicole: good morning. the dow jones industrials are pulling back a little bit, down about 20 points right now.
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you can take a look at some names that are lagging on our fox 50 index right now. starbucks is one of the big lakers. you are seeing some pressure here on wall street. one name not under pressure is apple. apple has had that all-time new high. right now you can see it is up 1.1%. the new iphone5 has had stellar pre-ordering sales. the best ever for apple. back to you. connell: thank you. protest continue today. israeli prime minister was asked all about it yesterday on "meet
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the press." >> did you, their very existence of the united states, we have to understand that we have to deal with it. in this vast expansive land, you can understand why they are so antagonistic to us. we are you and you are asked. connell: the author of obama's globe, the president abandonment special assistant to president nixon. react right off the bat to what the prime minister of israel had to say in terms of how this is being handled and how we view them. >> i totally agree with the prime mister.
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he tries to be diplomatic and friendly to the president although president obama is not friendly to him. he asked a very interesting question in that interview. he said we are asked to wait and he said wait for what? of course, we know the answers to that question. he is already revealing how he feels about that election. he revealed how he felt about it when the microphone was open and he did not know it was. in talking about that he said tell vladimir to give me space. after the election i can be more flexible. good lord.
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unbelievable. connell: i wanted to ask you a question. when it romney be better and how would he be different? in this particular situation, it would not be different. the president likes where he stands on foreign policy. would romney be different and or better in handling this particular crisis? >> the answer to that would be yes. it would not take much to be better. i think it should be the biggest statement to be known in the election. when he said i will be more flexible after the election, not knowing it was recorded, why didn't he tell that to the american people, the american voter.
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he told it to the president of russia who is certainly, although i would not necessarily call it an enemy, i would certainly call it an antagonist and someone we should certainly watch. i wish the media would continue to accent that statement. the election comes first and then the policy. connell: we have to wrap it up. >> i understand. connell: you can finish your last point. >> no, no, i wish that would be highlighted throughout this campaign and foreign-policy is tremendously important. it is more important than economics. connell: romney will have a chance to make those points in the debates. >> october the 22. connell: thank you for coming on today serve.
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dagen: in terms of domestic policy, romney's tax plan failing to help them keep the edge over president obama in at least four recent polls. they get the president the lead when it comes to the issue of taxes. steve moore is joining us now from washington, d.c. there is one abc news washington poll that gives obama a seven-point advantage on taxes. what gives, steve? >> those are really devastating numbers if you are a romney fan. do not forget, dagen, that what happened in january is a big tax time bomb. i do not think romney has sold his tax plan. i do not think american people know much about it. all people know is what obama has told them.
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this is an area where obama has clearly one the rhetorical war and if that keeps up, it is hard to believe that romney can win if people think their taxes are safer under obama than romney. dagen: simple idea, raise taxes on the wealthy and then he turned it around on romney and said he wants to lower taxes for the rich and ultimately the middle class will get hit with a tax increase. why isn't he fighting back? >> the good news but if you are a republican, dagen, is that he will fight back. today i think you will give a major speech on the economy. one of the things that he has allowed obama to get away with over and over again is your taxes will go up under romney. it is a 20% across the board
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reduction. that is not a tax increase on the middle class. that is a cut on your taxes. obama has been able to get the rhetorical high ground here and it is a myth to people. mitt romney is not getting his message out. dagen: that giant article today, i have heard people refer to it as the obituary of the romney campaign before people even go to the polls. steve, in terms of pack -- tax issues, can he turned it around? >> there is way too much doom and gloom on the side of the republicans right now. a lot can change over the next 50 days. you have two or three residential debates. you had the vice presidential
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debate. you will see two more employment reports and so on. there is too much gloom. what romney has to do is explain to the american people exactly what he wants to do. he has not told the american people what his plan is. dagen: steve, it was great to talk to you. steve moore of the "wall street journal." we will be talking to you a lot before november. have a good day. >> thank you. connell: the strike continues for the teachers in chicago. the mayor is working to take the teachers to court. we have heard all the criticism, but what has bernanke done right? that is something we will talk about next. he has gotten rid of some of the uncertainty and that is helping the market. dagen: the one year anniversary of our -- occupied wall street.
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judge andrew napolitano is here to talk all about that. comp november, record prices at the pump for election time. right now, oil, let's see where it is. close to $100 a barrel. ♪ [ male announcer ] you are a business pro.
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dagen: breaking news to bring you on the teachers strike in chicago. the school's filing for and injunction to and the strike by the teachers union. the mayor bowing to take it to the court and the public school system there has indeed done that. the school system arguing that the strike is illegal and endangering students. filing for an injunction to and this strike. the hundred -- kids out of
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school at home and at daycare, you name it. not being taught by teachers. connell: he said he would follow it and he did. let's go to nicole petallides on the floor of the new york stock exchange. nicole: i am watching a couple of things. let's start out with gilead. it is on the news that they have gotten approval. you get that up arrow. the fta has approved a new combination pill for hiv treatment. with these findings and approval you see the stock is doing well. it is a success.
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we have had two great weeks on wall street. that manufacturing number not good news. of course, not the growth we expect out of europe and china. that way some things as well. connell: now, let's make some money with charles payne. dagen: he has a consumer stock for your portfolio. charles: i will start out as a caveat up front. diamond foods is a hot stock. there is a lot about accounting fraud. it turns out they were cooking for them popcorn over there. they got rid of their ceo. they have to restate their earnings. they have been given a new
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deadline. some miscalculations. if you look at where the stock is right now, i think this could get a real good pop. they do have 1700 employees. they have some legitimate products. einhorn has covered. connell: i will start with the caveat. charles: if it works, you will make at least 30% on it. connell: there you go. dagen: have added. thank you. bernanke's moves are a good thing for the market. connell: today is the day. the one year anniversary on occupied wall street. the judge is coming in.
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judge andrew napolitano. first, a look at our world currencies are faring against the dollar. ♪ hmm, it says here that cheerios helps lower cholesterol as part of a heart healthy diet.
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>> @21 minutes past the hour i am lauren green with their fox news minute. they have been violent protests and both afghanistan and pakistan. -- resulting in a clash with police in which a demonstrator was killed. in chicago the public schools have filed and injunction. the schools say the strike is illegal and endangers the students. the strike has now entered its second straight. ajax panda has now given birth. the mother has built a large nest. the staff says you can hear the squawking noise the cub makes. those are your news headlines on the fox business network.
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back to connell. connell: our next guest says the federal reserve reduced some of the uncertainty that has been weighing on the market. we should continue to move up. always good to see you, sam. it is interesting in the open ended stimulus. >> it certainly raises the question of what they know and what we do not know. similar to what ariel draghi did, the president of the ecb, that we will do whatever we can. they are doing whatever they can keeping it as open ended. an id that will continue to drip connell: the europeans were kind
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of late to the party. here in the united states, you use the phrase "do what they can." we are running out of options. why would you still be optimistic longer-term about markets? >> at least removing half of the uncertainty leaving only one other half out there then i would say it is better than having both have to be concerned. i would say that the fed is an analogy of putting a lot of mattresses under a window where someone is likely to jump. it is cushioning the fall. congress, either between now and year end does something where they end up extending the bush tax cut, the reduction in payroll taxes, etc. i think the fed is saying they cannot do it alone and may need assistance. connell: markets are relatively
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quiet today. you are looking at something in particular. you say they should watch the dollar. we showed the exchange rate right before we took the last great. >> correlations are either at plus one or minus one. right now the dollar is at about eight minus 70 which is close to its all-time low which occurred back in september of last year. what it shows is that whenever the dollar is falling, it does end up taking on a risk of scenario and benefiting u.s. investment in that is where we are at right now. with that said action, that could continued to invest in stocks or overseas it translated back here into the u.s. connell: sam, thank you. appreciate it. >> my pleasure.
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dagen: occupy wall street investors marking the one-year anniversary of the movement. judge andrew napolitano is here to talk about it. connell: that should be pretty good. also -- dagen: that photo looks six years old to me. connell: looking for some relief at the pump. tom close -- you won't have to wait too long. the s&p -- there are some winners on the s&p. "markets now" will be right back. ♪ [ horn honks ]
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dagen: a heavy police presence around the new york stock exchange as protesters march for the one-year anniversary of occupy wall street. looking for some relief at the pump? a guest says it is not that far away but why we could still see a record price come election day. and they can't everybody on board, more problems, hello, for the euro zone bailout. connell: bottom of the hour, let's go inside the new york stock exchange right now, nicole looking at the financials. nicole: people are still talking about how they made it in through the protesters today. take a look at the most actively traded stock on the floor of the stock exchange today, that is dow component of bank of america which is a great representation of how the financials are doing overall today. you saw bank of america with a down arrow, but i can tell you,
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jpmorgan, citigroup, most of the banks do have down arrows today, this on the heels of weak new york fed empire manufacturing number, that survey number coming in with weak disappointment, also on the heels of what we have been seeing in europe and china. no revelation, no catalyst nothing to really move this market to the upside. however, we had two great weeks; right? who moved the markets was ben bernanke and the fed gave a nice bounce last week and the prior week running up to that. back to you. dagen: thanks nicole. europe's markets closing right now. ashley webster is here with more. disagreement over the bailout. ashley: exactly, that's it. back to you, dagen. after hitting 15 month highs last week, european markets losing dpround to start this week -- losing ground to start this week with energy and banking stocks leading the decliners. the dax down about 2/10.
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tens of thousands of protesters gathered over the weekend in central madrid. these protesters coming a day after spain's finance minister suggested that new belt-tightening steps are imminent. spain is trying to reduce the gaping budget deficit which last year stood at nearly 9% of gdp. the marches in madrid, banners with slogans like they are ruining the country and we have to stop them. large protesters against austerity measure also taking place in neighboring portugal, a real weekend event. demonstrators in lisbon by the way throwing tomatoes and fireworks at the portuguese headquarters of the imf. although they looked more orderly there, but certainly a weekend of protests across many places in europe. this week eu officials will begin detailed discussions on the four step process they have committed to as part of a redesign of the economic and monetary union. the plan of course calls for banking union and broader fiscal
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union, already though concerns about the time line being too ambitious and yes disagreements already surfacing between euro zone countries and oh by the way, greek judges are the latest to walk off the job today. they say they have taken pay cuts of 38%. they're not going to do it anymore. so the wheels of justice coming off in greece. back to you guys. dagen: ashley, thank you very much. connell: all right ashley, not exactly a greek judge, but we have our own judge on the latest developments of the protests downtown. near lay dozen arrests -- nearly a dozen arrests have been made. the occupy protest is back trying to create a wall around wall street. dagen: they mark the one year anniversary of the movement they call the ills of wall street and corporate greed. judge andrew napolitano an
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advocate of free speech is joining us now. covering the protests when they first started last year, you get the far right and far left down at these protests. you go far right or left enough, they just don't like government. >> you find people are standing back-to-back with each other, different spectrums of the circle. last year fox business sent many producers down there, interview people and we found dozens of ron paul supporters who were joining these leftists which is what most of occupy wall street consists of in things like end the fed and end the war. now of course the leftists want to end the banks. the ron paul people want to end the irs so at that point they diverge, but there is a commonality in opposition to big government and to alliance between big government and big banks. but that to me, connell, is -- it's interesting in that commonality. the constitutional question is
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how far can the police go in stopping them so people like nicole petallides can get to work? connell: we are showing a live picture from the park that's up the block from the new york stock exchange on the side of the screen as we speak right now. one of the turning points in this movement when mayor bloomberg said enough you can't camp out here anymore. i know they are back protesting marking their one year anniversary. there was a big legal fight about whether they could stay up in the park or set up encampment. >> the park is private property. there's a long history as to how it became private property. let's take the case, if i may, of protesters sitting on a sidewalk and literally stopping nicole petallides and the thousands of people who have to get to their jobs in lower manhattan from doing so. so we have on one hand the fundamental freedom of speech, the fundamental right of what's called expressive conduct, when you use your body and things other than words to express an opinion clashing with the fundamental right to walk on
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streets and to get to your place of work. how do they decide which right prevails? that is a job for the legislature or for the courts. it is not a job for the police. and the legislature and the courts must bend over backwards to permit free speech, but to also permit people to move about. dagen: so if the protesters, part of the occupy wall street movement, had pushed forward with this, would they have been given by the courts a permanent place to protest here in new york city? >> well, the courts don't give a permanent place to protest. the courts decide if what the police have done already is constitutional. but what the police should do is not arrest them and remove them. but move them so they can still protest and their protests can be heard, but our friends can still walk on the sidewalk and get to work. that allows their right to travel and their right to work to be exercised, but it also permits the protesters to protest in such a way that they
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can be heard by the targets of their protests. when they are arrested and put in jail, that silences them. so the goal here should be an accommodation of people's rights, not a silencing of one side and a triumph of the other, but an accommodation of both sides. connell: all these legal questions as interesting as they are may become moot points today's comeback notwithstanding this movement is kind of a shadow of its former self. i wonder if you hit on the key point in saying how diverse it was and maybe the reason it didn't have much focus is a reason it split apart. >> it is as you say minuscule compared what was going on a year ago. a year ago i found it dynamic and exciting and provoked great debate. today it is a side show. dagen: the party disappeared so there was no reason -- the importance for why some of the people were there disappeared
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when they had to show up on a daily basis and it was just about protesting whatever, the banks, you name it. >> i predict we will not be talking about these people by the end of the week. last year at this time we talked about them for months. i think it went on till thanksgiving. connell: yeah when the weather got cold. dagen: four years later we are still talking about the tea party. hatred of the banks gave rise to both those movements, far right, far left, there you go. >> back-to-back in a circle. dagen: exactly, i love it. connell: thanks judge. >> thank you guys. connell: moving along here, today you might have noticed a new look on the fox business network -- not her, she's been here a while. what am i so angry about? maybe it's being next to you. dagen: why is that photo of me six years old? connell: judge, you look phenomenal i might point out. >> thank you. connell: the bottom of the
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screen looks great. the new crawl down there and everything else. dagen: the graphics look amazing. i'm very excited about them. connell: more of us which i'm happy about. it's great. all right. dagen: i like the self-congratulations and self-praise. connell: did you hear gas prices might be coming down? wouldn't that be phenomenal? look at that. we are looking for some relief at the pump and only one person to look to when we talk about that, our friend tom closa is going to come on and say maybe 20 cents lower. that would be pretty good. dagen: iphone 5, thinner, slimmer lighter bigger screen. apple set a record for preorders on the first day. we have details ahead. take a look at the treasury markets. yield on the ten year. connell: those graphics are cool.
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to meet the needs of my growing business. but how am i going to fund it? and i have to find a way to manage my cash flow better. [ female announcer ] our wells fargo bankers are here to listen, offer guidance and provide you with options tailored to your business. we've loaned more money to small businesses than any other bank for ten years running. so come talk to us to see how we can help. wells fargo. together we'll go far. >> hi everyone i'm here with your fox business brief. the obama administration has filed another complaint against china with the world trade organization. the administration claims that the country is putting u.s. manufacturers at the competitive disadvantage by illegally subsidizing exports of autos and auto parts. netflix shares are getting hit
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today after the company was covered with an underperform rating. the firm says media companies hold the upper hand in netflix's efforts to acquire movies and tv series from them. it also cites weak subscriber growth for that rating. shares of office depot are jumping today after the activist investment fund revealed it's taken a more than 13% stake in the retailer. the fund says office depot could improve profitability if it implements a few of its suggestions including sell higher margin products. that's the latest from the fox business network giving you the power to prosper. so now i can be in the scene. advair is clinically proven to help significantly improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator working together to help improve your lung function all day.
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advair won't replace fast-acting inhalers for sudden symptoms and should not be used more than twice a day. people with copd taking advair may have a higher chance of pneumonia. advair may increase your risk of osteoporosis and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking advair. if you're still having difficulty breathing, ask your doctor if including advair could help improve your lung function. get your first full prescription free and save on refills at connell: stock alert for you on apple. less than a week after the big announcement the iphone 5 already smashing records. company revealed 2 million were ordered within 24 hours on the release on the preorders there. more than twice the number of its predecessor 4-s. apple selling out of preorder stock within hour of
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availability. the 4-s took nearly 24 hours to do that. with that let's look at the stock today, almost 700 bucks for apple. dagen: if you start lining up on tuesday or wednesday to get one of these things in the store, you are stupid. connell: idiotic, just order it on-line. dagen: can you wait for a few weeks? it will look just like this. connell: a little bigger. dagen: violence in middle east causing the price to hover around $100 a barrel as analysts wonder if the unrest could cause the administration to tap our nation's oil reserves. connell: let's go to peter barnes in d.c. with more. peter: new protests against the u.s. began in afghanistan, pakistan, lebanon and indonesia today over that antiislamic film. the president of libya now says the attack a week ago on the u.s. consulate in benghazi was a planned assault possibly organized by a group with -- with ties to al qaeda as an act
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of revenge. >> the best information and the best assessment we have today is that in fact this was not a pre-planned pre-meditated attack. that what happened initially was it was a spontaneous reaction -- peter: as you mentioned, oil and gasoline prices remain elevated this part over middle east tensions including new disagreements between the u.s. and israel over responding to iran's new clear program. -- nuclear program. that's fuelled new speculation that the president may tap the strategic petroleum reserve 7 weeks before election day, but one energy executive says oil supplies are adequate. >> there are many political reasons to draw down the strategic petroleum reserve. but there are really no strategic reasons to draw down the spr based on fundamentals. keep in mind, it is the strategic petroleum reserve, not the political expediency petroleum reserve.
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peter: the white house continues to say that tapping the reserve remains an option. dagen: thank you peter. connell: quarter till the hour here in new york and d.c. and everywhere on the east coast. quarter to the hour everywhere. it is quarter till 12:00 -- nicole: quarter to the hour, let's go. when you look at ford, the third recall this summer for the u.s. auto company now they are saying they have notified international highway transportation -- whatever -- administration basically telling them -- the brand, the 5500 edge crossover with two liter eco boosts model year 2012, they will have to recall those because of a defective fuel line. they have seen 11 cases so far. another proactive move here by ford, the third recall for the summer, as i noted down 1.7%
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right now. the broader market averages all down arrows, guys, the nasdaq, the worst of the bunch, down just over a quarter of 1%. dagen and connell? dagen: thank you nicole. peter barnes mentioned the on going discussion out there, whispers, if you will, about releasing oil from our strategic petroleum reserve. what does our next guest think about that and the direction for gasoline prices in this country? tom closa, chief oil analyst at the oil price information service, he knows more about gas prices than anybody. he's on the phone with us right now. tom, one, do you think that's a possibility still? obviously it would be the only political move, would it have an impact on the price of oil? >> i think it is a possibility. we have been hearing about it for a long time. i don't think unless there was some sort of coordinated effort with international countries to release oil, where really it is needed, not particularly needed
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in the u.s. right now. there might be a different agenda there though. very quietly in the last couple of weeks, the speculative position in crude oil has surpassed 300 million barrels. there's about 30 billion dollars of money that's bet on higher oil prices. so if they are gaming this, they may be gaming this to try to frighten some of that financial money out of oil and into the fear that there's not just anything but upside to oil. dagen: is the financial money in oil in such a big way in large part because of what the federal reserve is doing, tom? >> oh, that's -- yeah, and actually i think when you see the new numbers come out next week, we will probably find a much bigger position. you have accommodative monetary policy, and it causes a lot of money to flow into commodities in general. sometimes out of equities and into commodities. that was the last phase of the 08 debacle where the stock markets peaked and oil prices peaked well well after that. dagen: in terms of gasoline
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prices, what about their direction in the near run? even if they go down, could we still see a record come election day? >> yeah, i think it's probably 50/50 whether we see the record or not. last election day we were at about $3.48. we're about $3.87 now. prices will be dropping in the last 100 days of the year unless there's some more mideast or north african violence. we will have to see about the pace. there's a lot of money that's betting on commodities, gasoline is included there. about 40% or more of the positions in gasoline futures are held by large speculators and small speculators, so these are tough things to beat. dagen: tom, great to talk to you. mr. kloza -- kloza, take care. >> take care. connell: there's a lot to talk about, hockey.
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connell: we're going to have the trade here with sandra smith in a moment. couple of quick sports headlines for you on the weekend which was a tough one for tom brady and new england patriots. a fumble against arizona cardinals with about a minute left. sets up game winning field goal
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possibility for the normally reliable patriots kicker, normally reliable because that one went to the left and the patriots lose it, 42 yards for him you figure he's going to drain that, but he did not and the patriots did not win. dagen: if you have hair like mike, maybe you don't want to rip on tom brady's hair. connell: day one of the national hockey league lockout, the collective bargaining agreement expired. due no agreement, they've locked them out. the last lockout for the nhl was back in 04, 05, at approximately 400 players chose to take their talents overseas that time. october 11th the start date for the season if the lockout were to get lifted. not good for hockey. dagen: man, that makes me sad actually. that makes me sad.
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you know what? the patriots losing? makes me feel great. connell: can't win them all. dagen: the cowboys lost and the patriots lost. is that not a great weekend? third quarter coming to a close and many big companies are expected to post first declines in profits for the quarter since 09. connell: chicago bears fan sandra smith with the trade. sandra: if you hearfully of the big and -- any of big analysts out there calling for lower s&p by year's end, one of the big reasons is because they are wary on earnings. s&p 500 up 16 1/2% so far this year. right now the average forecast from analysts is for earnings to still be up 6.1% over last year for the year, the third quarter is not looking so good, thanks to some of these companies who are already putting out some warnings, fedex is one of them. they are saying right now that their profits -- by the way fedex shares up just about 4% this year, dramatically underperforming the broader market. projecting earnings decline of 4%. they are reporting tomorrow
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before the opening bell. they are really setting out the red flags about concerns in china, shipments in the united states could be weak, that's what analysts will be looking for there. that's weighing on ups, which doesn't report for another month. this stock even worse, it's up just 1% for the year, guys. so fedex reporting tomorrow. their earnings and red flags are out there. we will look at a few other companies throughout the day that have been warning on earnings and that they may drop some of these big companies for the first time in several years. back to you guys. connell: more on the turmoil meantime in the middle east coming up and what it all means for your money. dagen: then ben bernanke under heavy criticism for the latest round of bond buying. we have more on what the fed chief is doing, coming up.
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connell: that is what we will do. we have dennis kneale and cheryl casone to take us through the next hour. cheryl: happy monday. the middle east and your money. they are now new protests. dennis: and what bernanke is doing right. we have one market expert who says the fed chief has the right plan. cheryl: general motors tries to shed the government. dennis: like doing business with the sopranos. home prices posting the strongest gains in six years.
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we have double and their arguments whether the recovery is finally for real. cheryl: time for stocks now as we do every 15 minutes. nicole: what i am looking at right now is the dow jones industrial average. it is down right now. we are getting just a little bit back right now. this comes after some economic news we got this morning on new york fed manufacturing numbers that were disappointed. what is not disappointing? take a look at apple. another all-time high for apple as the iphone5 pre-orders are taking off the best ever.
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just doing great. up 1% right now. cheryl: thank you very much. we continue our coverage of the pilot protests in the middle east. at least one person is wounded. we are standing by and kabul for the very latest. reporter: we saw a rash of insider attacks where afghan security forces attacked. the big story here today is the protests we had in kabul. we have seen fairly peaceful, controlled and small protest here in afghanistan. that really changed here today. it was much more violet today. about three or 400 afghans turned out today. many of those that were out
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protesting, writing today, happened to be teenagers and children. less like a organized, more like an organized event rather than a genuine outpouring of anger over this and i islamic film. they did a lot of damage. they threw stones and injured within 50 afghan police officers. it does not appeared to be tied to that anti-islamic film. cheryl: thank you very much for that report. christian whitened -- what is the president doing wrong in your opinion? >> i think he is not being what
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reality is. susan rice was out on all the sunday shows yesterday saying this was a response to the movie. and outrage from one anti-muslim movie. it is more than that. they are having a great year in syria where they are likely to take control. they are doing very well politically. i think this is a much more about that. as a result, the president response looks very weak. cheryl: you spent six years at the state department. taking a look at businesses from a global perspective and how businesses can be impacted. many could be affected i what we are seeing. how so? >> i think it increases political risk certainly within
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the middle east. this goes beyond tourist just not wanting to go and visit the pier mids. i think you can have companies that have suffered some consequences of the u.s. government response. maybe i will take my vacation or look for that business opportunity here in the u.s., rather than overseas. cheryl: i can't help but wonder if there will be a slowdown. also, frankly, the concern of americans that will not want to go overseas whether it is for business or pleasure. >> yes. i think that is right.
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this is not just anti-americanism having a good day around the world. the people who want to unify our sending a signal to reformers. we can't put people in the streets. no one will do anything about it. it set back a preformed across the middle east. that has consequences for places where businesses are entirely dependent on the rule of law. it will raise the risk and rates of questions. cheryl: last question to you about foreign aid. the u.s. is sending aliens of dollars overseas to many of these countries. do you think that will be reassessed? >> i certainly hope so.
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that will have to come from capital hill or the american people. we give billions to egypt and pakistan. it does not have any positive effect to logically -- so far we have not seen serious cuts to the billions against pakistan, egypt and others. no sign yet. cheryl: christian, thank you very much. we would love to have you back. dennis: global growth and turned knocking people off their qe3 hi today. our next guest says the fed chief is getting a bad rap. the latest fed moves, do they
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show that bernanke is fed up with the rest of washington and he had to act alone? >> yes. the rest of america has pretty much lost faith for the rest of congress to get anything done. he is basically showing us time and time again he will use monetary policy. bernanke has been the only thing that has been consistent for this market right now. the fact that we barely sold off today, i think, again, is another good sign. dennis: i thought nicole was to keep interest rates low so that will help the economy. is that actually a cool of what the fed is doing? >> the last announcement on
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friday i thought was pretty brilliant of the fed. they targeted that toward the mortgage market. that is one of the biggest job creators right now in the united states. we need to more than double that. each house that is being built right now is creating three new jobs. the jobs mandate was definitely good. they are trying to renew the animal spirits out there. a lot of our clients tend to be looking at their portfolio for incomes. you have to look at the risk spectrum that is yielding much more than that. that is creating this wealth affect for investors. they feel a little bit better about themselves. housing starting to creep up and right now they are starting to feel pretty good. the confidence is there. dennis: is bernanke overstepping here? existing home inventory eight
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year low. maybe housing is arty on its way back. >> i agree. i think it is on the way back. it is one of the areas where he does see some improvement. the latest move, give that some or tailwind. he is trying to create jobs anyway he can. dennis: still waiting to see if materials, energy and small caps will catch up. do you think that will happen we mac yes. i do, actually. the only way they will catch up is that higher rate of pay. i do think that will continue. that is something we are watching right now because we think that will provide fuel for the next leg up. dennis: you recommend dividend,
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tax rates are going up. >> that is absolutely eight. with the fiscal cliff, that is definitely a concern of ours. people still need to have income. right now with rates so low, pretty much the cleanest shirt and the laundry right now. you have to use it until something else shows up. dennis: thank you. cheryl: general motors trying to but not the government. dennis: can you believe that, cheryl? tented in the middle east and high prices of gas. as we do every day at this time, let's look at oil. up, up, up. ♪ woman 1: this isn't just another election. we're voting for...
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and what they said is amazing. review 5-hour energy over 73 percent who reviewed 5-hour energy said they would recommend a low calorie energy supplement to their healthy patients who use energy supplements. seventy-three percent. 5-hour energy has four calories and it's used over nine million times a week. is 5-hour energy right for you? ask your doctor. we already asked 3,000. how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past.
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i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. dennis: it is 15 past the hour. stocks now. nicole: we are taking a look at netflix. you will see some folks behind me. they are native to each of their country. we are looking at netflix in
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particular. dropping to an underperforming reading. talking about intent competition. netflix, you can see it right now, down about 5%. the price target of $50. right now it is at $57. they are saying that it is going lower. the dow jones industrial average down. the s&p 500 down also. we have folks here from the ukraine, bulgaria, kuwait, etc. back to you. space. dennis: we have charles payne. charles: i have two basic services. one is a trading and one is a buy and hold. two of them are recent. i wanted to share it with the
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audience. i only wanted to take half. it hit 62 today. hanging above the 200 day moving average. this one i would go back into on a dip. the other is chapultepec chipolte. it does not matter how many shares. cheryl: i am wondering about the timing of chipolte. i would be a little nervous of selling out of chipolte now. charles: portfolios should be based on -- we are up 18%.
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you have to take half of that and think it. the stock got hammered, maybe for a reason, maybe because of overreaction. we did not buy that in in a buy and hold service. if we did, we would still have it. that is how people should execute their stock losses. did you buy the stock to hold it for five years? did you buy it for a trade? dennis: thank you very much, charles payne. cheryl: there is a lot going on with oil today. trading around $99 a barrel today. tensions in the middle east certainly have analysts wondering if obama will tap the reserves. >> there is no dow. i do not think it will happen.
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i think it is hanging over the market right now. right now oil prices have been climbing this wall of worry while concerned about the middle east has really shaken off some of the weaker economic data that we sell, or the worries coming out of europe and china. the other thing is options expiration day. you always have to be on the guard for a big move late in the session. back to you. cheryl: thank you. dennis: tm -- general motors wants a bailout. cheryl: the bulls have an argument for the housing market. we have both sides coming up. here is how the world currencies are faring against the u.s. dollar. we will be right back. ♪ [ male announcer ] what if you had thermal night-vision goggles,
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[ male announcer ] get a 4-week trial plus $100 in extras including postage and a digital scale. go to and never go to the post office again. >> hat 23 minutes past the hour i am lord green with your fox news minute. the school say the chicago strike is illegal and endangers the students. the strike has now entered its
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second week. protests have entered more cities today. they are warning of a scheduled march. protesters stormed kfc and mcdonald's restaurants. the film has prompted my letter of protest and countries. in honor of the documents 225th anniversary. the documents which are usually locked away in a vault will be available for viewing for five hours. that is your fox news minute. now let's go back to dennis and cheryl. cheryl: the treasury department has balked at an offer to buy general motors. the reason is for taxpayers. elizabeth macdonald is here.
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>> general motors is telling fox business it has been in talks with treasuries sent the beginning of the year. here is the deal, here is the bottom line, in order for taxpayers to breakeven they have to trade at $53 a share. shares are trading around $24. the word is, maybe, treasury is trying to cut a deal to get those shares sold. if you sold off 500 million shares, you will see a $14 billion loss. if you thought we were close on friday, you will see a $9 billion loss. we will sell shares and the $35 range, you will still see losses , anywhere from $7 billion-$9 billion. we asked general motors whine now. they are saying because of the tarp rules on executive pay.
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they are saying it is hard to convince someone to show up for work for the good of the country. essentially that is what they want to get out from under. government should not be a long-term investor. the government is not a hedge fund. we did not do this bailout to make a profit. we did it to bail out the auto industry. the bottom line is, for all of the bailouts, including fannie and freddie and also allied financial and gm, we could still see looming losses. look at fannie and freddie. money still owed after dividends returned back to the government. 300 banks still owe nearly $10 billion to taxpayers. it may be premature to say it is
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a win-win right now. cheryl: thank you very much. dennis: the argument for and against the housing market. our experts will debate whether this is the right time to invest in housing again. cheryl: chicago's mayor takes the striking teachers to work to force them back to work. first, a look at some of today's winners on the s&p. ♪ so... [ gasps ]
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cheryl: it is 30 minutes past the hour. stocks now. nicole: you never know .here on the floor of the new york stock exchange. the dow is down about 30 points. we talked about a ford recall. we are also keeping a close eye on general motors. apple has approached the 700 mark. record sales for the iphone5. netflix downgraded. intel downgraded. after two straight weeks of gains, last week we gained and you have the dow and s&p sitting at five-year highs. back to you. dennis: thank you. home prices posting their strongest gain in six years. housing experts remain divided
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whether this recovery is for real. we have both sides here today. let's start with the bull. >> absolutely. we are in the bottom of the second inning in the ninth inning baseball game. we are not in extra innings here. we have talked to mark byers this morning, eight-ten are ready this morning, that went out and put contracts on properties this weekend. it normally slows down in october and november. there is no slowdown. we are starting to increase very quickly. dennis: home prices strongest gain in six years. what is not to like? >> we have to think about what it is actually that is driving some of the improvements. one of the key factors about how
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it will stimulate the economy last week is the fact we have record low interest rates, not only in the broader market, but for home mortgages. there will be some response in the market. people will go after it. they will try to buy homes. look at the number of homes we are selling. with today's interest rates, we should be moving a lot more. can we sustain these once rates rise. that is a real concern for us right now. dennis: should we care that artificially low rates are driving that? >> no. look at every ceo of every major homebuilder. we have seen the bottom. when all the major homebuilder's are for it and all the confidence levels are rising, i am telling you right now, low interest rates are driving the market. there aren't two bills in
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congress that there were hearings on last thursday in the house the subcommittee. this would generate more credit, put it into consumer hands, therefore, increase in the housing market. dennis: okay. isn't that the whole point of low interest rates? >> absolutely. there is nothing to be disappointed about when home sales begin to come off their bottom. there is no doubt about that. a lot of the gains that we see today are a function of the fact that we see these artificially low rates. we need to sustain these rates. what other thinks that will allow us to sustain home sales? that will not be monetary policies, it will be things like job growth.
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dennis: would you tell your mom not to buy a home right now? >> we would be doing them a disservice if we did that. they still need to approach it very very judiciously. i know homebuilder sentiment is up. two factors here, one we have an aging inventory because we have not had much building over the last couple years. the other thing is homebuilder sentiment about where the housing market is going is probably the worst indicator we have. dennis: every homebuilder says we are at the bottom, not to worry. would you tell your mom to buy a home today? >> yes, i would. warren buffett and donald trump is telling you to go buy real estate. i am a big bowl right now.
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that means we are moving forward. dennis: thank you very much for debating that. cheryl: it is time for your west coast minute. a court in california will hear arguments about the state use of dna technology to prosecute cases. california's dna collection efforts have become unconstitutional. fox announced today -- replacing tom rothman who will step down at the end of the year. fox television will become a stand-alone business. and if you are job hunting, you may want to avoid san diego. san diego is the second worst city for finding employment in the fourth quarter of this year. the distinction based on a
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recent manpower surveys. that is it for your west coast minute. dennis: the new iphone, we will take a hard look at some of those great sales numbers. cheryl: and chicago's mayor taking the teachers to court in hopes they will be sent back to the classroom. take a look at the ten year treasuries as we head to break. ♪
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>> i am lauren simonetti with your fox business brief. the empire manufacturing index coming in with a reading of negative 10m in the second straight month with a negative reading. the victory auto makers have until midnight to reach an agreement with their canadian workers over a labor deal. the union says it will continue talks with general motors, as well as, chrysler. the bid to takeover the mining company is expected to wrap up this week aired according to the london telegraphic, they are supposed to be improving the offer. that is the latest from the fox business network. giving you the power to prosper. ♪ ally bank.
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why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just to stay ale... but feel alive. the new c class is no exception. it's a mercedes-benz through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.
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dennis: happening now in washington, discussion of the threat posed to our national security by our nations debt crisis. they are putting their heads together a gathering in washington. former secretary of defense and former chairman of the joint chiefs of staff are there. they will lead a conversation on national security. that $4 trillion debt reduction plan, that is what they are discussing. fox business is monitoring that event. we will bring you any news as it develops. cheryl: companies offer private jet shares to corporate exec and
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individuals. joining me now the ceo of flight options. mike, you are trailing, but you are climbing. we are seeing a recovery. why? >> well, cheryl, i think it is due to a number of things. i think corporate prospects are on the rise. i think the airline service continues to be very challenging. those are some of the factors that continue. our business is up 32% last year cheryl: they can either be a part owner of a jet or they can buy a card and therefore they can basically get on if it is open. what is the average price? >> well, for instance, our jet card is $100,000.
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that is the entry level product. cheryl: 100 rand for the year? >> 425 hours. you can use it as you like. the hours never expire. cheryl: okay. there you go. i can take as many people on my jet if i rented. let me ask you about the competition right now. are you finding that you are getting more people that are joining the service and willing to put it on the company card. are they putting it on the books to use your service? >> they are doing a number of different things. the products are either ownership were you take title to an undivided interest of eight aircraft and that entitles you to fly so many times a year or you do a jet card, kind of like a debit card in the sky. use that as quickly or slowly as
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you like. then you have a card we can buy hours. cheryl: why would i go with a flight options versus a net jet? why would i go with your company? >> well, we actually have a legacy in the gulf stream program. i think what you find with flight options more so than any other competitors is we are really good at listening. we design custom programs. we listen to our customers whether it is an individual or a company. we try to design a company specific for them. i think with flight options what has really fueled our growth is value. we are the best value in this
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space. cheryl: many u.s. corporations are going to be very careful. they don't want to be labeled as the fatcat. are you still finding it is smaller? >> it really depends upon the customer. we have seen a lot of retailers who bounce a number of people at a time. they can see five or six locations. you can, you know, it is about time efficiency and productivity you have a big meeting in the sky. there are some trips where we have customers who fly coast to coast. it really just depends. cheryl: it is an interesting business. then a round for a long time.
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thank you very much. >> cheryl, thank you for having me. dennis: it is quarter till. stocks now. tesla motors is up. nicole: let's talk about tesla motors. it is having a great day here on wall street. 5.25%. this is coming on the heels of a key upgrade that they received. they have the ability to significantly outperform. some of the analysts have been lowering their expectations. there is certainly upside potential. just saying the reward for tesla is looking pretty good and better than some of the other stock. cheryl: nicole, thank you very much. dennis: we will have the truth
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behind those sales numbers that we are hearing about the iphone5. cheryl: first, a look at some of today's winners over on the nasdaq. there are some names for you. we will be right back. ♪
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cheryl: we want to show you the latest from the new york stock
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exchange. you are looking right now at live pictures on the one year anniversary of the movement. they call that ails of wall street. there has been some criticism that the movement is not drawing the attention it did last year. you be the judge. pictures of last year and this year. as you can see, there is the difference for you. we will continue to monitor these protests for you. dennis: the chicago teachers strike continues. steve brown joins us with the latest. this is a strike of choice and now he wants to take that choice away? >> it does appear that is the legal gambit that he is pursuing. they are pursuing to head to court and pursue and injunction
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to force the teachers back to the table. two reasons. one, that the strike is not about non-economic issues and, therefore, illegal by state law. the other is that it is a clear and present danger to students who would otherwise be inside a safe school. the mayor saying "i have instructed the city's corporation counsel to work with the general counsel and sub's chicago public schools and in this immediately and get our children back into the classroom." the response has been quick and highly negative calling it a contemptuous act that the mayor is attempting to go around their right to collectively bargain, basically go around their right to collectively protest and speak out against the treatment
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by the hands of the city. it was not voted on yesterday, there was a deal on the table, it was enlightening, but the teachers union president said it is not her job to sell the package to her members. have a listen. >> i have a certain amount of integrity. i am not a marketer. our people know how to read. they know how to do math. they understand these things. they need to have the opportunity to have the time to do that and i want to give it to them. >> while the members go to that deal, the judge has decided he will not rule on the injunction application until wednesday. they have, at minimum, two days before heading to court to see whether they will be forced to
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go back to school. dennis: steve brown in chicago. the iphone5 is not even out yet. the first wave is sold out. at&t says it has just set a new record for early orders. it has sold 2 million in nearly four hours. that is better than double. some customers will not get it until october. how is it that apple can get this so wrong? why not have 4 million units ready and set of 2 million. cheryl: exactly. the planning seems a little suspect. [ talking over each other ] dennis: this is engaging demand. guarantee no manufacturer was not orders stay unfilled and loose sales. you do not leave stuff on the
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table. cheryl: we will see. the corporate profit boom in danger as the third quarter comes to a close. sandra smith joins us now. sandra: everyone is looking at the stock chart for 2012. we are here at multi- year highs. down a little bit today. one big part of this picture will be earnings. as we conclude the quarter, the outlook is dimming year over year. they are forecasting a drop of 2.2% and profits. month over month, and even bigger job of 3%. eighty-eight companies have cautioned. twenty-one of those companies have signaled a positive outlook. intel is not one of them. it is one of the companies that has put out a warning about their chip maker and pc sales globally have been weak. they are not participating.
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as of today, sitting at multi- year lows. it has lowered its forecast to $13.2 billion. that would be a drop of 7% year over year. that is just one of those 88 companies lowering their forecast. cheryl: time to get ready for earnings season. sandra: again. dennis: ashley webster and tracy byrnes have more on occupied wall street protests, or the lock on them. cheryl: what this all means for your wallet. ♪ 4g lte has the fastest speeds.
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so let's talk about coverage. based on this chart, who would you choose ? wow. you guys take a minute. zon, hands down. i'm going to show you guys another chart. pretty obvious. i don't think color matters. pretty obvious. what'sretty obvious about it ? that verizon has the coverage. verin. verizon. we're going to go to another chart. it doesn't really matter how you present it.
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it doesn't matter how you present it. verizon. more 4g lte coverage than all other networks combined. looking for a better place to put your cash? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want from a bank, like no-fee atms, all over the world. free checkwriting and mobile deposits. now depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today and discover another reason serious investors are choosing fidelity. ashley: occupy wall street celebrating their own anniversary today. i love the right to free speech, but is it good to do that protest when americans are in danger in embassies across the middle east? tracy: it's a sunny day in new york, and probably had


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